The propaganda below was on the home page of CUK. The way it reads, it seems to be putting this one-sided view of things as the "way it is" on the subject. It has a very obvious agency bias. Anyone who has been a contractor for a while will be aware that, while agencies do exist that work to a fixed % (and these are therefore fairly straightforward to deal with), for every one of these you encounter you will meet a bunch of others who are simply playing you and the client off against each other and pocketing as high a % as they can get away with.
Not maintaining a fair balance and mentioning this side of things in a front page article on the subject just stinks. It makes me wonder if a palm is being greased?
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Contractors’ Questions: How much do agents take?
Contractor’s Question :Is there a rule of thumb for the margin a recruitment agent makes on your contract?
I am in my first contract (IT Project Management) and have worked out that the agent that placed me is taking 25% of the daily rate the company is paying for my services. Is that pretty average or outrageous? What sort of margin is usual or does it vary widely? And does an agent increase their rate when contractors are squeezed or do clients have a say?
Answer, by a City recruiter, supplying financial and IT project consultants:
The percentage the agency takes is negotiated between the agency and their client, and typically there is no negotiation at all, just a fixed percentage set by the client which might normally be anything between 10-35%.
This has no bearing on the contractor's rate as it is worked out as 'contractor’s rate + agency fee', just as a permanent placement fee has no impact on the salary of the candidate placed.
Frankly, it is a matter between the agency and client and the reason some contractors get excited by it, when permanent staff don't, says more about the nature of some contractors, it's really none of their concern.
Not maintaining a fair balance and mentioning this side of things in a front page article on the subject just stinks. It makes me wonder if a palm is being greased?
================ propaganda starts ==================
Contractors’ Questions: How much do agents take?
Contractor’s Question :Is there a rule of thumb for the margin a recruitment agent makes on your contract?
I am in my first contract (IT Project Management) and have worked out that the agent that placed me is taking 25% of the daily rate the company is paying for my services. Is that pretty average or outrageous? What sort of margin is usual or does it vary widely? And does an agent increase their rate when contractors are squeezed or do clients have a say?
Answer, by a City recruiter, supplying financial and IT project consultants:
The percentage the agency takes is negotiated between the agency and their client, and typically there is no negotiation at all, just a fixed percentage set by the client which might normally be anything between 10-35%.
This has no bearing on the contractor's rate as it is worked out as 'contractor’s rate + agency fee', just as a permanent placement fee has no impact on the salary of the candidate placed.
Frankly, it is a matter between the agency and client and the reason some contractors get excited by it, when permanent staff don't, says more about the nature of some contractors, it's really none of their concern.
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